Washington, DC – The Federal Communications Commission has adopted a Third Report and Order and Memorandum Opinion and Order which allows the Local Multipoint Distribution Service (LMDS) eligibility restriction to sunset on June 30, 2000. The FCC determined that allowing the eligibility restriction to sunset will promote the public interest.

The LMDS eligibility restriction was adopted in 1997 and prohibits incumbent local exchange carriers and incumbent cable companies from having an attributable interest in the LMDS A block license that overlaps with ten percent or more of the population in their service areas.

Specifically, the FCC concluded that the standard for determining whether to sunset the eligibility restriction should be whether open eligibility poses a significant likelihood of substantial competitive harm in specific markets, and, if so, whether eligibility restrictions are an effective way to address that harm. After reviewing the LMDS eligibility restriction, the FCC concluded that the record does not support a conclusion that open eligibility poses such a significant threat of substantial competitive harm in specific markets; indeed, open eligibility may improve the availability of services, especially in rural areas. Accordingly, the FCC is allowing the restriction to expire.

Action by the Commission on June 20, 2000 by Third Report and Order and Memorandum Opinion and Order (FCC 00-223). Chairman Kennard, Commissioners Ness, Powell and Tristani with Commissioner Furchtgott-Roth concurring and issuing a separate statement.